[Click eStock] "Jcontentree, Broadcast Expectations Not Reflected in Stock Price"

DB Financial Investment Issues 'Buy' Rating and Sets Target Price at 37,000 Won... Closing Price on 26th at 27,500 Won

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that the stock price of Jcontentree has not yet reflected the broadcasting expectations.

According to DB Financial Investment on the 27th, Jcontentree's third-quarter broadcasting segment sales are estimated at 66.8 billion KRW, with an operating profit of 6.7 billion KRW. These figures represent growth of 31.5% and 20%, respectively, compared to the previous year.

There are several expectations for the third-quarter broadcasting segment. 'Did We Love?' (pre-sold to Netflix), 'Elegant Friends' and 'The Good Detective' (post-sale), and 'The World of the Married' (post-sale) are expected to be reflected this time. Dramas airing in the second half such as '18 Again' and 'Private Life' are also expected to be partially reflected.

Shin Eun-jung, a researcher at DB Financial Investment, analyzed, "Stable performance is expected to continue due to fixed pre-sales of Wednesday-Thursday slot dramas," adding, "We plan to consider upward revisions of performance if additional pre-sales of works occur. In the fourth quarter, the tentpole drama 'Run On' is scheduled to air in the Wednesday-Thursday slot, so top-line growth is expected."

The film segment was noted positively for the trend of increasing monthly viewers since hitting bottom in April. Along with this, cost efficiency is being continuously improved through workforce reductions. Researcher Shin explained, "As of the third week of August, the monthly number of viewers is about 8 million, an increase of 42.4% compared to the previous month," and added, "In the third quarter, screenings of overseas blockbusters such as 'Tenet' and 'Kingsman 2' are expected to be reflected."

The total sales for the third quarter are projected at 109.7 billion KRW, with an operating loss of 0.5 billion KRW. DB Financial Investment gave Jcontentree a 'Buy' investment rating with a target price of 37,000 KRW. The closing price on the 26th was 27,500 KRW. Researcher Shin stated, "Concerns about the film segment's poor performance seem to be sufficiently reflected in the stock price compared to the broadcasting segment's full-scale growth with the addition of Wednesday-Thursday dramas," and added, "Theaters have passed the worst situation since bottoming out in April, and it is necessary to take a long-term view of the upward-trending broadcasting performance."

This content was produced with the assistance of AI translation services.